Hynix Q2 net profit slumps

Hynix Semiconductor, the world's second-largest memory chip maker, said Thursday its second-quarter net profit fell 34 percent year-on-year as weak demand for personal computers hit chip prices. The South Korean firm posted a net profit of 473 billion won ($451 million) in April-June compared to 718.68 billion a year earlier. The figure was however higher than most analysts' forecasts and an improvement on 273.54 billion won in the first quarter. Second-quarter operating profit was 446.89 billion won, down 56 percent from the previous year, while sales fell 15.9 percent to 2.76 trillion won. Chip prices started falling worldwide in the second half of last year as the US economic recovery slowed and eurozone debt problems emerged. Analysts cited by Dow Jones Newswires said they expect Hynix's quarterly earnings to improve, with chip prices likely to stabilise as consumer demand gradually recovers.